MYGN is still a great buy. First, let's look at the facts: 1) A judge struck down patents on Myriad's BRACAnalysis tests. 2) 80% of revenues come from BRACAnalysis tests. 3) Without these patents others can compete with these tests.
Here is why it is not so gloomy: 1) 7 patents on the tests were voided. They still have 16 patents on the tests. Sounds like competition will have a much harder time competing. Myriad's CEO said "we do not believe that the final outcome of this litigation will have a material impact on Myriad's operations due to the patent protection afforded Myriad by its remaining patents" 2) Myriad will certainly appeal which could last years. Companies are unlikely to start developing a competing drug not knowing if the appeal will give the patents right back to Myriad.
So my question is, what threat does this judgment pose? What warrants a near 5% drop? Please explain! I still stand behind my original analysis and see a buy opportunity as the price drops.
this company is full of idiots. what right do they THINK they have to patent a lifeform that occurs in nature. thats just FOOKIN absurd!!!! Greedy f.ucks, Im glad they were struck down in court. Jesus when does corporate profit stop in medicine???
not only will they appeal but i think they will win the appeal easily. This judge seems to think that genes are simply discovered. The discovery methods are,however,inventions. I think the patent office will defend their issuance. Moreover, the entire biotech industry would be threatened by disallowance of patents.
What is the likelihood that every claim of every DNA patent would eventually be disallowed?
Even if DNA patents are narrowed in scope, the genetic diagnostic business still represents huge opportunities. Factors such as first mover advantages, brand positioning/loyalty and perceived switching costs would become more important as competition would be made easier. Companies would just have to become more creative at serving their customers like in most other industries.